Asian tourists boost Australian luxury retailing
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International tourists, particularly from Asia, have been a major driver of strong revenue growth in Australian luxury retailing over the past five years.
The latest Luxury Retailing in Australia report from business data company IbisWorld predicts that across the sector, which covers the sales of such goods as Swiss watches and designer handbags and clothing, revenue will reach AU$1.8 billion next year, an 11 per cent annual growth rate. For the ensuing five years, growth is anticipated to continue at the rate of 8.2 per cent a year to reach more than $2.7 billion.
IbisWorld anticipates that about 30 per cent of industry revenue can be attributed to inbound tourists, especially from increasingly sophisticated markets in Asia.
Its reports says these tourists have traditionally been drawn to heritage luxury labels and flagship stores, mainly because of the perceived prestige of brands like Chanel, Gucci and Louis Vuitton across Asia, particularly China.
A gradual depreciation of the Australian dollar since mid-2013 has helped drive growth in inbound tourism, boosting demand for luxury goods.
Questions & Answers
Q.What is the expected revenue for the Australian luxury retailing sector next year?
What is the expected revenue for the Australian luxury retailing sector next year?
The luxury retailing sector in Australia is predicted to reach AU$1.8 billion in revenue next year. This represents an 11 per cent annual growth rate for the industry.
Q.Which specific types of luxury goods are included in this sector's revenue calculations?
Which specific types of luxury goods are included in this sector's revenue calculations?
The sector's revenue covers sales of high-end items such as Swiss watches, designer handbags, and luxury clothing. These categories contribute to the overall figures reported by IbisWorld.
Q.Why are Asian tourists particularly attracted to certain luxury brands in Australia?
Why are Asian tourists particularly attracted to certain luxury brands in Australia?
Asian tourists are drawn to heritage luxury labels and flagship stores due to the perceived prestige of brands like Chanel, Gucci, and Louis Vuitton. This appeal is especially strong in markets such as China.
Q.How has the Australian dollar influenced the demand for luxury goods from tourists?
How has the Australian dollar influenced the demand for luxury goods from tourists?
A gradual depreciation of the Australian dollar since mid-2013 has supported growth in inbound tourism. This currency trend has in turn boosted demand for luxury goods among visitors.